STR on November Ballot
The short-term rental market is about to take another hit in the form of additional taxes levied by the City of Aspen. I sat in on the city council work session last week, and the tax question will be on the November ballot. They are still debating if that tax should be 9% or 13%. If passed, the tax will be effective starting in late spring. The tax question resulted from the recent poll conducted by Fredrick Polls. The poll had 322 respondents; the results can be found here on page 7.
There will be a significant negative impact on the rental market if this tax is passed. If you rent your property on the Airbnb platform, your guest will now be assessed 39% in taxes and fees.
This assessment will steer people away from the Aspen Market, and they will go to a market with a lower tax rate.
I would encourage anyone registered to vote in town or have friends who are registered voters to reach out to the city council and voice their opposition to this tax. There is already an 11.3% tax levied on all rentals. The town claims this new tax will help build more employee housing and help solve the affordable housing issue.
I’m afraid I have to disagree and believe that the employee housing program in Aspen is broken and should be fixed first. In addition, the City of Aspen’s Budget for 2022 is $179mill for a population of 7,000. There has to be room in that budget for additional employee housing. I do not believe that an extra tax is needed to mitigate for employee housing.
Click here for a list of city council names and contact information.
What you need to know about your STR Permit and Ordinance 9
Ordinance 9 goes into effect on October 1st. What does that mean for you as a property owner? Properties located in the lodging district have no restrictions in place. All you need is a business license and a current STR permit. If you sell your property, your permit can transfer.
If you are outside of the lodging district and have an STR permit, you have until October 1, 2022, to sell your property and transfer that permit.
If you sell your property after the October 1 deadline, the new owner must get in line for a new permit. The chances of being granted a new permit are slim due to the large number of outstanding licenses already issued.
With no short-term rental permit in place, your property’s rental income and value will decrease. The GIS map for the lodging zones can be found here but is very hard to read. Please reach out if you have any questions.
Recent Rentals
I recently listed this 3 bedroom 2.5 bathroom rental home on the Roaring Fork River and rented it for 98% of the asking price in one day. My attention to detail and online marketing caught the attention of the renter. They signed a one-year lease with the option to renew for multiple years.
Please contact me here if you or anyone you know is looking to rent their property. I can provide a listing presentation and comparable market analysis to show you the rental potential.
Planning Your Winter Vacation: Luxury Rentals with Prime Ski Access
As summer comes to a close in the Roaring Fork Valley, we look ahead to the next peak season. Whether your itinerary features ski boots and snowy peaks or relaxing by the fire, we’re here to help you find your next mountain getaway. See our top picks for your winter 2022 excursion– while they’re still available!
Exclusive Listing
901 E Hyman Avenue, Unit 9 is an ideal property for an escape in the heart of downtown or an investment property with excellent rental history. This perfectly remodeled, contemporary 2-bedroom/2-bath condo is offered fully furnished with a wood-burning fireplace, stackable washer/dryer, off-street parking, and gear locker.
901 E Hyman Avenue, Unit 9 | Aspen, CO I 875 SF | 2 Beds | 2 Baths | Offered at $3,250,000
